Fill in the blanks: Problem: Arlene bought Malong worth P56,000 with 5%, 3% trade discounts from Supplier from Mindanao on May 29, 2020. The Supplier gave Arlene a term of n/45 and the Supplier will shoulder the shipping costs and the payment to the shipper. 1. How much is the trade discount? 2. When is the due date to pay the account? 3. What is the term of shipment? Choose if: FOB Shipping Point - Freight Prepaid, FOB Shipping Point - Freight Collect, FOB Destination - Freight Prepaid, FOB Destination - Freight Collect

Fill in the blanks: Problem: Arlene bought Malong worth P56,000 with 5%, 3% trade discounts from Supplier from Mindanao on May 29, 2020. The Supplier gave Arlene a term of n/45 and the Supplier will shoulder the shipping costs and the payment to the shipper. 1. How much is the trade discount? 2. When is the due date to pay the account? 3. What is the term of shipment? Choose if: FOB Shipping Point - Freight Prepaid, FOB Shipping Point - Freight Collect, FOB Destination - Freight Prepaid, FOB Destination - Freight Collect

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 10MC

See similar textbooks

Similar questions

Give typing answer with explanation and conclusion 1. You enter an NDF to buy UYU (Uruguayan Peso) for $.0363/UYU. The contract size is UYU50,000,000 and the contract matures in six months.  If the spot rate is $.0381/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total?  If the spot rate is $.0346/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total?
You have just purchased new goods worth 100,000 EUR from your supplier. Your supplier offers you to pay within 35 days. If you pay within the first 8 days, you get a discount of 1.2%. When would you pay? Why? What is the effective interest rate? Under which circumstances would you take the trade credit?
ABC Company sold 10 units of goods with a total list price of P30,000 on Jan. 1, 2019. Given that the trade discount is 5% and the cash discount is 10%, and that the cash discount period is 10 days and the credit period is 30 days, if the customer settles the debt on Jan. 8, 2019, what is the actual amount he needs to pay? Choices: P28,500 P25,650 P30,000 P17,100
Jupiter Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $610,000 (cost of $500,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $10,000. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Jupiter for the full sales price. Instructions a. Prepare the journal entry(ies) to record the sale and related cost of goods sold for Jupiter Company on January 2, 2020, and the payment on January 28, 2020. Assume that Jupiter Company records the January 2, 2020, transaction using the net method. b. Prepare the journal entry(ies) to record the sale and related cost of goods sold for Jupiter Company on January 2, 2020, and the payment on January 28, 2020. Assume that Jupiter Company records the January 2, 2020, transaction using the gross method.
Riverbed Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $630,700 (cost of $500,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $10,700. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Riverbed for the full sales price. (a)Prepare the journal entry(ies) to record the sale and related cost of goods sold for Riverbed Company on January 2, 2020, and the payment on January 28, 2020. Assume that Riverbed Company records the January 2, 2020, transaction using the net method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Choose date Jan 2 or Jan 28…
Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit. These terms will affect the cost of the asset for both the buyer and the seller. Consider the following case: Tasty Tuna Corporation buys on terms of 3/15, net 45 from its principal supplier. If Tasty Tuna receives an invoice for $856.75, then the true price of this invoice is . The supplier is willing to extend credit that exhibits a nominal annual cost of . Suppose Tasty Tuna doesn’t take the discount and instead chooses to pay its supplier five days' late—so that on average, Tasty Tuna will pay its supplier on the 50th day after the date of sale. As a result, Tasty Tuna can decrease its actual nominal cost of trade credit by by paying late.
Riverbed Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $659,900 (cost of $460,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,900. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Riverbed for the full sales price. Prepare the journal entry(ies) to record the sale and related cost of goods sold for Riverbed Company on January 2, 2020, and the payment on January 28, 2020. Assume that Riverbed Company records the January 2, 2020, transaction using the net method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date…
Belts are shipped to the buyer on June 4 at a cost of $5500.00. The terms on invoice are 3/10, n/60. When is the last day the buyer can get the cash discount? If the buyer decides to pay for the shipment on June 30. What is the net amount to be paid?
Your firm is considering the purchase of equipment from two suppliers. Supplier A requires payment of $5500 today for each machine. Supplier B requires a payment of $5600 in 6-months for each machine. If you earn 5% APR compounded monthly, and if both suppliers deliver the exact same machines today and have same warranty, etc... which supplier is offering the better financial terms to your firm? A) Supplier A because $5500 > $5600 B) Supplier A, because the FV of $5500 is $5638.94 which is greater than $5600 C) Supplier B, because the PV of $5600 is $5462, which is less than $5500 D) Supplier B, because the PV of $5600 is $5462, which is less than $5600
Assume the time from acceptance to maturity on a $2,280,000 banker’s acceptance is 90 days. Further assume that the importing bank’s acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 7 percent. Determine the amount the exporter will receive if he holds the B/A until maturity and also the amount the exporter will receive if he discounts the B/A with the importer’s bank.
AL Enterprises purchases P4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.)20.11%23.45%22.28%21.17%24.63%
Mahrouq Technologies buys $12,726,823 of materials (net of discounts) on terms of 1/30, net 60, and it currently pays within 30 days and takes discounts. Mahrouq plans to expand, and this will require additional financing. If Mahrouq decides to forego discounts and thus to obtain additional credit from its suppliers, calculate the nominal cost of that credit. Answer in % terms to 2 decimal places (no % sign).